01-6704RIGINAL
Presented By
Green Sheet # �� � S `
Council File # � \ — Ci�O
Resolution #
RESOLUTION
CfTY OF SAINT PAUL, MINNESOTA
Re£erred To Committee: Date
�G
2
3
4
5
6
7
RESOLUTION APPROVING THE
ESTABLISF3n�NT OF A TAX INCREMENT FINANCING DISTRTCT
(J.J. HILL PR03ECT) AND THE ADOPTION OF A
TAX INCREMENT FINANCING PLAN THEREFOR
BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota (the "City") as follows:
8 Section l. Recitals
9 1.01 TheHousingandRedevelopmentAuthorityoftheCityofSaintPaul,Minnesota(the"Authority")
10 has heretofore established the Riverfront Redevelopment Project Area (the "Redevelopment Project Area") and
11 adopted a redevelopment plan therefar (the "Redevelopment Plan").
12 1.02 The Authority has asked the City Council to approve the creafion, within the Redevelopment
13 Project Area, of a Tax Increment Financing District as a redevelopment tasc increment fmancing district under
14 Minnesota Statutes, Section 469.174, Subdivision 10 (the "Tas Increment District"), and the adoption of a Tax
15 Increment Financing Plan thereior, all pursuant to and in accordance with Minnesota Statutes, Section 469.174
16 through 469.179 (the "Tas Increment Act").
17
18
19
20
21
22
23
24
1.03 The Authority has performed all actions required by law to be performed prior to the creation of
the Taac Tncrement District and adoption of a TaY Increment Plan therefor, including, but not limited to,
notification ofthe Ramsey County Commissionerrepresenting the area ofthe County inwhich the Tas Increment
Financing District is located, and delavering a copy of the Tax Increment Financing Plan to Ramsey County and
Independent School District Number 625, which have taating jurisdiction over the property to be included in the
Taac Increment District. The Authority has requested that the City approve the adoplion of the Tax Increment
Financing Plan and the creation of the Tas Increment District following the holding of a public hearing upon
published and mailed notice as required by law.
25 Section 2. Findinss for the Creation of TaY Increment Financing�District (J.J. Hill Projectl and
26 Adontion of a TaY Increment Financine Plan therefor.
27
28
29
30
31
32
2.01 The City Council hereby finds that the creation of Tas Increment Financing District (7.7. Hill
Pro}ect) and adoption of the Tas Increment Plan therefor, are intended and, in the judgment ofthe City Council,
its effect will be, to carry out the objectives of the Redevelopment Plan and to create an impetus for the
redevelopment of blighted structures and the construction of mixed income owner-occupied housing, and wili
otherwise promote certain public purposes and accomplish certain objecrives as specified in the Redevelopment
Plan and Tas Increment Financing Plan.
o ° _`�°
33 R��� n�'�e�ty Council hereby finds that Taac Increment Financing District (J.7. Hill Project) qualifies
34 as a"redeveiopme istrict" within the meaning of the Tas Increment Act for the following reasons:
35
36
37
38
39
40
41
42
43
4sl
45
46
47
48
49
50
51
52
The District is, pursuant to Minnesota Statutes, Section 469.174, Subdivision 10(a)(1), a"re
development districY' because it consists of a project or portions of a project within which the
following conditions, reasonably distributed throughout the District, e�st: (1) parcels consisting
of at least 70% of the area of the Dishict are occupied by buildings, streets, utilifies, or other
improvements; and (2) more than 50% of the buildings aze "structurally substandard" (within the
meaning of Minnesota Statutes, Section 469174, Subdivision 1Q(b)) to a degree requiring
substantial renovation or cieazance. The District consists of 6 pazcels, and all 6 are built up.
There are 2 buildings, both of which are structurally substandazd to a degree requiring renovation
or cleazance. The buildings aze structurally substandazd because they contain defects in structural
elements or a combination of deficiencies in essential utilities and facilities, light and ventilation,
fire protection including adequate egress, layout and condition of interior partitions, or similar
factors, which defects or deficiencies are of sufficient total significance to justify substatttial
renovation or clearance, specifically defects in shuctural elements. More than 50% of the
buildings within the District have been found to be structurally substandard and not in compliance
with applicable building codes, and could not be brought into such compliance at a cost of less
than 15% of the cost of constructing new structures of the same size and type on the subj ect sites,
respectively.
53 The supporting facts for these determinations are on file with the staff of the Authority and include but
54 are not limited to the Appraisal of "James J. Hill Building" dated October 23, 1998, and a Memorandutn dated
55 Apri118, 2001, regarding the "Wells Fargo Building".
56 2.03 The City Council hereby makes the following findings:
57 (a) The City Council further finds that the proposed development, in the opinion of the City
58 Council, would not occur solely through private investrnent within the reasonably foreseeable future and,
59 therefore, the use of tax increment financing is deemed necessary. The specific basis for such finding being:
60 The property on which housing development will occur would not be developed in the reasonably
61 foreseeable future because it currently contains a lazge structure that has been vacant for many
62 years, and is structurally substandard within the meaning of the Tas Increment Act. The
63 Developer has represented that it could not ptoceed with the development without tax increment
64 assistance.
65 (b) The City Council fixrther finds that the Tas Increment Financing Plan conforms to the
66 generai plan for the development or redevelopment of the City as a whole. The specific basis for such finding
67 being:
68 The Tax Increment Financing Plan will generally complement and serve to implement policies
69 adopted in the City's comprehensive plan. The housing development contemplated is in
70 accordance with the existing zoning for the property.
71 (c) The City Council fixrther finds that the Tas Tncrement Financing Plan will afford maximum
72 opportuuity consistent with the sound needs of the City as a whole for the development of the Tas Increment
73 District by private enterprise. The specific basis far such finding being:
74 The proposed development to occur within the Tax Increment District is housing. The
75 development will increase the taYable market valuation of the City. The available housing in the
7� R ��l��t�area of the city will expand by more than 46 owner occupied units with the completion p� � G`l �
77 of e deve opment contemplated by ttris Taac Increment Fittancing Plan.
78 (d) For purposes of compliance with Minnesota Statutes, Section 469.175, Subdivision 3(2),
79 the City Council hereby finds that the increased market value of the properry to be developed within the Taac
80 Increment District that could reasonably be eapected to occur without the use of taac increment financing is $0,
81 which is less than the mazket value estimated to result from the proposed development (i.e., $16,377,550) after
82 subtracting the present value of the pro}ected tas increments for the maximum duration of the TaY Inerement
83 Dish (i.e., $4,683,359). In making these findings, the City Council has noted that the property has been
84 undeveloped for many years and would likely remain so if tax increment financing is not available. Thus, the
85 use of tu� increment financing will be a positive net gain to the City, the School Dishict, and the County, and the
86 tas increment assistance does not exceed the benefit which will be derived thezefrom.
87
88
.'
r
2.04 The provisions of this Section 2 are hereby incorporated by reference into and made a part of the
Taac Increment Financing Plan.
Section 3. Creation of Taac Increment Financine District (J.J. Hill Project) and the Tas Increment
Financine Plan therefor.
91 3.01 The creation ofTaac Increment Financing District (J.J. Hill Project) is hereby approved and the Tax
92 Increment Financing Plan therefor is hereby adopted.
93 3.02 The staff of the City, the staff of the Authority and the City's and Authority's advisors and legal
94 counsel are authorized and directed to proceed with the implementation of the T� Increment District and the Tas
95 Increment Financing Plan and for this purpose to negotiate, draft, prepare and present to the Boazd of
96 Commissioners of the Authority for its consideration all fiuther plans, resolutions, documents and contracts
97 necessary for this purpose.
�,
Adopted by Council: Date �OQy
Adoptioa Certified �by Counci Secretary
By: � °�-'_�
Approved by Mayor: Date �./ [� �(
By: �
/'
Requested by pepartment of:
Plannina & Economic Development
By: � �
Approved by Finane' Se ices
B -(�.e!Z��'.(� �a��2�'�_. ���
Foxm Approved by City Attoraey
i �
A " �i�
Approved by Mayor for ubmission to Council
By:
�
,DEPARTMENT/OFFICE/COONCII,: DATE INITfATED GREEN SHEET rro .•101759 p �_GZl
PED 5/1/Ol '
CONTACl' PERSON & PHONE: J '�— S� INI'1'IALDATE INITTAIJDATE
G Peltier 6-6619 ' �
� ' i �°" 2 DEPARTMENT DIIt 6 CITYCAUNCII.
Anne Pulver, 6-6681 � r ASSIGN 3 CITY ATIORNEY(L-Veiih) crrY ctsxtc
��ggg 4 FINANCIAI, SERV DIIt _FINANCIAL SERV/ACCI'G
MUST BE ON COUNCII. A END Y ATE) FOR -
�OOI ROUTING 5 MAYOR(ORASSTJ _CIVII,SERVICECOMMISSION
pgD� 1 Tom Meyer
� �� —
TOTAL # OF SIGNATURE PAGES 1(CLIP ALL LOCATIONS FOR SIGNAI'URE)
ncriox �ues�n: Signing and placing the attached resolurion on the City Council agenda for May 23, 2001,
including a public hearing.
RECO1�IIv�NDA1IONS: Approve (A) or Reject (R) PERSONAI, SERVICE CONTRAGTS MUST ANSR'ER THE FOi.I.OWING
Qi7F,S'i'IONS:
PLANNING COMbIISSION 1. Has t6is person/fwi ever worked under a contract for this departrnert?
CIB COMIvff'1TEE Yes No
CIVIL SERVICE COD�fISSION 2. Has this person/firtn ever been a ciry employee?
IIl2A Boazd Yes No
3. Does this persoNfirtn possess a skill not no:mally possessed by any curtent city empioyee?
Yes No
Eaplain all yes answers on separate sheet and attach to green sheet
INITIATING PROBLEM, ISSUE, OPPORTlJNITY (Who, What, When, Where, Why):
Crea6ng a t� increment financing (TIF) disirict and adopting a TIF plan for the James J. Hill Building project.
HRA and the City will later approve a development agreement and specific financing.
� �@�SCYa �Srit9t
ADVANTAGESIFAPPROVED: �o,s���� �� ,
Gives the City and HRA the opporhinity to consider providing tax increment financing for the redevelopment of
the existing vacant, historic building.
DISADVANTAGES IF AYPROVED: V�D
�L.
None.
MAY 2 2 2�?�;
� tTY ° ���oRNEY
DLSADVANI'AGES IF NOT APPROVED:
The development cannot occur but for tas increment fmanicng.
TOTAL AMOUN"1' OF TRANSACTION: $ `COST/REVENUE BUDGETED:
FONDING SOURCE: ACTIVITY NI'7MBER:
FINANCIAL INFORMATION: (EXPLAIN)
4RIGINAL
Presented By
Green Sheet # �� � S `
Council File # � \ — Ci�O
Resolution #
RESOLUTION
CfTY OF SAINT PAUL, MINNESOTA
Re£erred To Committee: Date
�G
2
3
4
5
6
7
RESOLUTION APPROVING THE
ESTABLISF3n�NT OF A TAX INCREMENT FINANCING DISTRTCT
(J.J. HILL PR03ECT) AND THE ADOPTION OF A
TAX INCREMENT FINANCING PLAN THEREFOR
BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota (the "City") as follows:
8 Section l. Recitals
9 1.01 TheHousingandRedevelopmentAuthorityoftheCityofSaintPaul,Minnesota(the"Authority")
10 has heretofore established the Riverfront Redevelopment Project Area (the "Redevelopment Project Area") and
11 adopted a redevelopment plan therefar (the "Redevelopment Plan").
12 1.02 The Authority has asked the City Council to approve the creafion, within the Redevelopment
13 Project Area, of a Tax Increment Financing District as a redevelopment tasc increment fmancing district under
14 Minnesota Statutes, Section 469.174, Subdivision 10 (the "Tas Increment District"), and the adoption of a Tax
15 Increment Financing Plan thereior, all pursuant to and in accordance with Minnesota Statutes, Section 469.174
16 through 469.179 (the "Tas Increment Act").
17
18
19
20
21
22
23
24
1.03 The Authority has performed all actions required by law to be performed prior to the creation of
the Taac Tncrement District and adoption of a TaY Increment Plan therefor, including, but not limited to,
notification ofthe Ramsey County Commissionerrepresenting the area ofthe County inwhich the Tas Increment
Financing District is located, and delavering a copy of the Tax Increment Financing Plan to Ramsey County and
Independent School District Number 625, which have taating jurisdiction over the property to be included in the
Taac Increment District. The Authority has requested that the City approve the adoplion of the Tax Increment
Financing Plan and the creation of the Tas Increment District following the holding of a public hearing upon
published and mailed notice as required by law.
25 Section 2. Findinss for the Creation of TaY Increment Financing�District (J.J. Hill Projectl and
26 Adontion of a TaY Increment Financine Plan therefor.
27
28
29
30
31
32
2.01 The City Council hereby finds that the creation of Tas Increment Financing District (7.7. Hill
Pro}ect) and adoption of the Tas Increment Plan therefor, are intended and, in the judgment ofthe City Council,
its effect will be, to carry out the objectives of the Redevelopment Plan and to create an impetus for the
redevelopment of blighted structures and the construction of mixed income owner-occupied housing, and wili
otherwise promote certain public purposes and accomplish certain objecrives as specified in the Redevelopment
Plan and Tas Increment Financing Plan.
o ° _`�°
33 R��� n�'�e�ty Council hereby finds that Taac Increment Financing District (J.7. Hill Project) qualifies
34 as a"redeveiopme istrict" within the meaning of the Tas Increment Act for the following reasons:
35
36
37
38
39
40
41
42
43
4sl
45
46
47
48
49
50
51
52
The District is, pursuant to Minnesota Statutes, Section 469.174, Subdivision 10(a)(1), a"re
development districY' because it consists of a project or portions of a project within which the
following conditions, reasonably distributed throughout the District, e�st: (1) parcels consisting
of at least 70% of the area of the Dishict are occupied by buildings, streets, utilifies, or other
improvements; and (2) more than 50% of the buildings aze "structurally substandard" (within the
meaning of Minnesota Statutes, Section 469174, Subdivision 1Q(b)) to a degree requiring
substantial renovation or cieazance. The District consists of 6 pazcels, and all 6 are built up.
There are 2 buildings, both of which are structurally substandazd to a degree requiring renovation
or cleazance. The buildings aze structurally substandazd because they contain defects in structural
elements or a combination of deficiencies in essential utilities and facilities, light and ventilation,
fire protection including adequate egress, layout and condition of interior partitions, or similar
factors, which defects or deficiencies are of sufficient total significance to justify substatttial
renovation or clearance, specifically defects in shuctural elements. More than 50% of the
buildings within the District have been found to be structurally substandard and not in compliance
with applicable building codes, and could not be brought into such compliance at a cost of less
than 15% of the cost of constructing new structures of the same size and type on the subj ect sites,
respectively.
53 The supporting facts for these determinations are on file with the staff of the Authority and include but
54 are not limited to the Appraisal of "James J. Hill Building" dated October 23, 1998, and a Memorandutn dated
55 Apri118, 2001, regarding the "Wells Fargo Building".
56 2.03 The City Council hereby makes the following findings:
57 (a) The City Council further finds that the proposed development, in the opinion of the City
58 Council, would not occur solely through private investrnent within the reasonably foreseeable future and,
59 therefore, the use of tax increment financing is deemed necessary. The specific basis for such finding being:
60 The property on which housing development will occur would not be developed in the reasonably
61 foreseeable future because it currently contains a lazge structure that has been vacant for many
62 years, and is structurally substandard within the meaning of the Tas Increment Act. The
63 Developer has represented that it could not ptoceed with the development without tax increment
64 assistance.
65 (b) The City Council fixrther finds that the Tas Increment Financing Plan conforms to the
66 generai plan for the development or redevelopment of the City as a whole. The specific basis for such finding
67 being:
68 The Tax Increment Financing Plan will generally complement and serve to implement policies
69 adopted in the City's comprehensive plan. The housing development contemplated is in
70 accordance with the existing zoning for the property.
71 (c) The City Council fixrther finds that the Tas Tncrement Financing Plan will afford maximum
72 opportuuity consistent with the sound needs of the City as a whole for the development of the Tas Increment
73 District by private enterprise. The specific basis far such finding being:
74 The proposed development to occur within the Tax Increment District is housing. The
75 development will increase the taYable market valuation of the City. The available housing in the
7� R ��l��t�area of the city will expand by more than 46 owner occupied units with the completion p� � G`l �
77 of e deve opment contemplated by ttris Taac Increment Fittancing Plan.
78 (d) For purposes of compliance with Minnesota Statutes, Section 469.175, Subdivision 3(2),
79 the City Council hereby finds that the increased market value of the properry to be developed within the Taac
80 Increment District that could reasonably be eapected to occur without the use of taac increment financing is $0,
81 which is less than the mazket value estimated to result from the proposed development (i.e., $16,377,550) after
82 subtracting the present value of the pro}ected tas increments for the maximum duration of the TaY Inerement
83 Dish (i.e., $4,683,359). In making these findings, the City Council has noted that the property has been
84 undeveloped for many years and would likely remain so if tax increment financing is not available. Thus, the
85 use of tu� increment financing will be a positive net gain to the City, the School Dishict, and the County, and the
86 tas increment assistance does not exceed the benefit which will be derived thezefrom.
87
88
.'
r
2.04 The provisions of this Section 2 are hereby incorporated by reference into and made a part of the
Taac Increment Financing Plan.
Section 3. Creation of Taac Increment Financine District (J.J. Hill Project) and the Tas Increment
Financine Plan therefor.
91 3.01 The creation ofTaac Increment Financing District (J.J. Hill Project) is hereby approved and the Tax
92 Increment Financing Plan therefor is hereby adopted.
93 3.02 The staff of the City, the staff of the Authority and the City's and Authority's advisors and legal
94 counsel are authorized and directed to proceed with the implementation of the T� Increment District and the Tas
95 Increment Financing Plan and for this purpose to negotiate, draft, prepare and present to the Boazd of
96 Commissioners of the Authority for its consideration all fiuther plans, resolutions, documents and contracts
97 necessary for this purpose.
�,
Adopted by Council: Date �OQy
Adoptioa Certified �by Counci Secretary
By: � °�-'_�
Approved by Mayor: Date �./ [� �(
By: �
/'
Requested by pepartment of:
Plannina & Economic Development
By: � �
Approved by Finane' Se ices
B -(�.e!Z��'.(� �a��2�'�_. ���
Foxm Approved by City Attoraey
i �
A " �i�
Approved by Mayor for ubmission to Council
By:
�
,DEPARTMENT/OFFICE/COONCII,: DATE INITfATED GREEN SHEET rro .•101759 p �_GZl
PED 5/1/Ol '
CONTACl' PERSON & PHONE: J '�— S� INI'1'IALDATE INITTAIJDATE
G Peltier 6-6619 ' �
� ' i �°" 2 DEPARTMENT DIIt 6 CITYCAUNCII.
Anne Pulver, 6-6681 � r ASSIGN 3 CITY ATIORNEY(L-Veiih) crrY ctsxtc
��ggg 4 FINANCIAI, SERV DIIt _FINANCIAL SERV/ACCI'G
MUST BE ON COUNCII. A END Y ATE) FOR -
�OOI ROUTING 5 MAYOR(ORASSTJ _CIVII,SERVICECOMMISSION
pgD� 1 Tom Meyer
� �� —
TOTAL # OF SIGNATURE PAGES 1(CLIP ALL LOCATIONS FOR SIGNAI'URE)
ncriox �ues�n: Signing and placing the attached resolurion on the City Council agenda for May 23, 2001,
including a public hearing.
RECO1�IIv�NDA1IONS: Approve (A) or Reject (R) PERSONAI, SERVICE CONTRAGTS MUST ANSR'ER THE FOi.I.OWING
Qi7F,S'i'IONS:
PLANNING COMbIISSION 1. Has t6is person/fwi ever worked under a contract for this departrnert?
CIB COMIvff'1TEE Yes No
CIVIL SERVICE COD�fISSION 2. Has this person/firtn ever been a ciry employee?
IIl2A Boazd Yes No
3. Does this persoNfirtn possess a skill not no:mally possessed by any curtent city empioyee?
Yes No
Eaplain all yes answers on separate sheet and attach to green sheet
INITIATING PROBLEM, ISSUE, OPPORTlJNITY (Who, What, When, Where, Why):
Crea6ng a t� increment financing (TIF) disirict and adopting a TIF plan for the James J. Hill Building project.
HRA and the City will later approve a development agreement and specific financing.
� �@�SCYa �Srit9t
ADVANTAGESIFAPPROVED: �o,s���� �� ,
Gives the City and HRA the opporhinity to consider providing tax increment financing for the redevelopment of
the existing vacant, historic building.
DISADVANTAGES IF AYPROVED: V�D
�L.
None.
MAY 2 2 2�?�;
� tTY ° ���oRNEY
DLSADVANI'AGES IF NOT APPROVED:
The development cannot occur but for tas increment fmanicng.
TOTAL AMOUN"1' OF TRANSACTION: $ `COST/REVENUE BUDGETED:
FONDING SOURCE: ACTIVITY NI'7MBER:
FINANCIAL INFORMATION: (EXPLAIN)
4RIGINAL
Presented By
Green Sheet # �� � S `
Council File # � \ — Ci�O
Resolution #
RESOLUTION
CfTY OF SAINT PAUL, MINNESOTA
Re£erred To Committee: Date
�G
2
3
4
5
6
7
RESOLUTION APPROVING THE
ESTABLISF3n�NT OF A TAX INCREMENT FINANCING DISTRTCT
(J.J. HILL PR03ECT) AND THE ADOPTION OF A
TAX INCREMENT FINANCING PLAN THEREFOR
BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota (the "City") as follows:
8 Section l. Recitals
9 1.01 TheHousingandRedevelopmentAuthorityoftheCityofSaintPaul,Minnesota(the"Authority")
10 has heretofore established the Riverfront Redevelopment Project Area (the "Redevelopment Project Area") and
11 adopted a redevelopment plan therefar (the "Redevelopment Plan").
12 1.02 The Authority has asked the City Council to approve the creafion, within the Redevelopment
13 Project Area, of a Tax Increment Financing District as a redevelopment tasc increment fmancing district under
14 Minnesota Statutes, Section 469.174, Subdivision 10 (the "Tas Increment District"), and the adoption of a Tax
15 Increment Financing Plan thereior, all pursuant to and in accordance with Minnesota Statutes, Section 469.174
16 through 469.179 (the "Tas Increment Act").
17
18
19
20
21
22
23
24
1.03 The Authority has performed all actions required by law to be performed prior to the creation of
the Taac Tncrement District and adoption of a TaY Increment Plan therefor, including, but not limited to,
notification ofthe Ramsey County Commissionerrepresenting the area ofthe County inwhich the Tas Increment
Financing District is located, and delavering a copy of the Tax Increment Financing Plan to Ramsey County and
Independent School District Number 625, which have taating jurisdiction over the property to be included in the
Taac Increment District. The Authority has requested that the City approve the adoplion of the Tax Increment
Financing Plan and the creation of the Tas Increment District following the holding of a public hearing upon
published and mailed notice as required by law.
25 Section 2. Findinss for the Creation of TaY Increment Financing�District (J.J. Hill Projectl and
26 Adontion of a TaY Increment Financine Plan therefor.
27
28
29
30
31
32
2.01 The City Council hereby finds that the creation of Tas Increment Financing District (7.7. Hill
Pro}ect) and adoption of the Tas Increment Plan therefor, are intended and, in the judgment ofthe City Council,
its effect will be, to carry out the objectives of the Redevelopment Plan and to create an impetus for the
redevelopment of blighted structures and the construction of mixed income owner-occupied housing, and wili
otherwise promote certain public purposes and accomplish certain objecrives as specified in the Redevelopment
Plan and Tas Increment Financing Plan.
o ° _`�°
33 R��� n�'�e�ty Council hereby finds that Taac Increment Financing District (J.7. Hill Project) qualifies
34 as a"redeveiopme istrict" within the meaning of the Tas Increment Act for the following reasons:
35
36
37
38
39
40
41
42
43
4sl
45
46
47
48
49
50
51
52
The District is, pursuant to Minnesota Statutes, Section 469.174, Subdivision 10(a)(1), a"re
development districY' because it consists of a project or portions of a project within which the
following conditions, reasonably distributed throughout the District, e�st: (1) parcels consisting
of at least 70% of the area of the Dishict are occupied by buildings, streets, utilifies, or other
improvements; and (2) more than 50% of the buildings aze "structurally substandard" (within the
meaning of Minnesota Statutes, Section 469174, Subdivision 1Q(b)) to a degree requiring
substantial renovation or cieazance. The District consists of 6 pazcels, and all 6 are built up.
There are 2 buildings, both of which are structurally substandazd to a degree requiring renovation
or cleazance. The buildings aze structurally substandazd because they contain defects in structural
elements or a combination of deficiencies in essential utilities and facilities, light and ventilation,
fire protection including adequate egress, layout and condition of interior partitions, or similar
factors, which defects or deficiencies are of sufficient total significance to justify substatttial
renovation or clearance, specifically defects in shuctural elements. More than 50% of the
buildings within the District have been found to be structurally substandard and not in compliance
with applicable building codes, and could not be brought into such compliance at a cost of less
than 15% of the cost of constructing new structures of the same size and type on the subj ect sites,
respectively.
53 The supporting facts for these determinations are on file with the staff of the Authority and include but
54 are not limited to the Appraisal of "James J. Hill Building" dated October 23, 1998, and a Memorandutn dated
55 Apri118, 2001, regarding the "Wells Fargo Building".
56 2.03 The City Council hereby makes the following findings:
57 (a) The City Council further finds that the proposed development, in the opinion of the City
58 Council, would not occur solely through private investrnent within the reasonably foreseeable future and,
59 therefore, the use of tax increment financing is deemed necessary. The specific basis for such finding being:
60 The property on which housing development will occur would not be developed in the reasonably
61 foreseeable future because it currently contains a lazge structure that has been vacant for many
62 years, and is structurally substandard within the meaning of the Tas Increment Act. The
63 Developer has represented that it could not ptoceed with the development without tax increment
64 assistance.
65 (b) The City Council fixrther finds that the Tas Increment Financing Plan conforms to the
66 generai plan for the development or redevelopment of the City as a whole. The specific basis for such finding
67 being:
68 The Tax Increment Financing Plan will generally complement and serve to implement policies
69 adopted in the City's comprehensive plan. The housing development contemplated is in
70 accordance with the existing zoning for the property.
71 (c) The City Council fixrther finds that the Tas Tncrement Financing Plan will afford maximum
72 opportuuity consistent with the sound needs of the City as a whole for the development of the Tas Increment
73 District by private enterprise. The specific basis far such finding being:
74 The proposed development to occur within the Tax Increment District is housing. The
75 development will increase the taYable market valuation of the City. The available housing in the
7� R ��l��t�area of the city will expand by more than 46 owner occupied units with the completion p� � G`l �
77 of e deve opment contemplated by ttris Taac Increment Fittancing Plan.
78 (d) For purposes of compliance with Minnesota Statutes, Section 469.175, Subdivision 3(2),
79 the City Council hereby finds that the increased market value of the properry to be developed within the Taac
80 Increment District that could reasonably be eapected to occur without the use of taac increment financing is $0,
81 which is less than the mazket value estimated to result from the proposed development (i.e., $16,377,550) after
82 subtracting the present value of the pro}ected tas increments for the maximum duration of the TaY Inerement
83 Dish (i.e., $4,683,359). In making these findings, the City Council has noted that the property has been
84 undeveloped for many years and would likely remain so if tax increment financing is not available. Thus, the
85 use of tu� increment financing will be a positive net gain to the City, the School Dishict, and the County, and the
86 tas increment assistance does not exceed the benefit which will be derived thezefrom.
87
88
.'
r
2.04 The provisions of this Section 2 are hereby incorporated by reference into and made a part of the
Taac Increment Financing Plan.
Section 3. Creation of Taac Increment Financine District (J.J. Hill Project) and the Tas Increment
Financine Plan therefor.
91 3.01 The creation ofTaac Increment Financing District (J.J. Hill Project) is hereby approved and the Tax
92 Increment Financing Plan therefor is hereby adopted.
93 3.02 The staff of the City, the staff of the Authority and the City's and Authority's advisors and legal
94 counsel are authorized and directed to proceed with the implementation of the T� Increment District and the Tas
95 Increment Financing Plan and for this purpose to negotiate, draft, prepare and present to the Boazd of
96 Commissioners of the Authority for its consideration all fiuther plans, resolutions, documents and contracts
97 necessary for this purpose.
�,
Adopted by Council: Date �OQy
Adoptioa Certified �by Counci Secretary
By: � °�-'_�
Approved by Mayor: Date �./ [� �(
By: �
/'
Requested by pepartment of:
Plannina & Economic Development
By: � �
Approved by Finane' Se ices
B -(�.e!Z��'.(� �a��2�'�_. ���
Foxm Approved by City Attoraey
i �
A " �i�
Approved by Mayor for ubmission to Council
By:
�
,DEPARTMENT/OFFICE/COONCII,: DATE INITfATED GREEN SHEET rro .•101759 p �_GZl
PED 5/1/Ol '
CONTACl' PERSON & PHONE: J '�— S� INI'1'IALDATE INITTAIJDATE
G Peltier 6-6619 ' �
� ' i �°" 2 DEPARTMENT DIIt 6 CITYCAUNCII.
Anne Pulver, 6-6681 � r ASSIGN 3 CITY ATIORNEY(L-Veiih) crrY ctsxtc
��ggg 4 FINANCIAI, SERV DIIt _FINANCIAL SERV/ACCI'G
MUST BE ON COUNCII. A END Y ATE) FOR -
�OOI ROUTING 5 MAYOR(ORASSTJ _CIVII,SERVICECOMMISSION
pgD� 1 Tom Meyer
� �� —
TOTAL # OF SIGNATURE PAGES 1(CLIP ALL LOCATIONS FOR SIGNAI'URE)
ncriox �ues�n: Signing and placing the attached resolurion on the City Council agenda for May 23, 2001,
including a public hearing.
RECO1�IIv�NDA1IONS: Approve (A) or Reject (R) PERSONAI, SERVICE CONTRAGTS MUST ANSR'ER THE FOi.I.OWING
Qi7F,S'i'IONS:
PLANNING COMbIISSION 1. Has t6is person/fwi ever worked under a contract for this departrnert?
CIB COMIvff'1TEE Yes No
CIVIL SERVICE COD�fISSION 2. Has this person/firtn ever been a ciry employee?
IIl2A Boazd Yes No
3. Does this persoNfirtn possess a skill not no:mally possessed by any curtent city empioyee?
Yes No
Eaplain all yes answers on separate sheet and attach to green sheet
INITIATING PROBLEM, ISSUE, OPPORTlJNITY (Who, What, When, Where, Why):
Crea6ng a t� increment financing (TIF) disirict and adopting a TIF plan for the James J. Hill Building project.
HRA and the City will later approve a development agreement and specific financing.
� �@�SCYa �Srit9t
ADVANTAGESIFAPPROVED: �o,s���� �� ,
Gives the City and HRA the opporhinity to consider providing tax increment financing for the redevelopment of
the existing vacant, historic building.
DISADVANTAGES IF AYPROVED: V�D
�L.
None.
MAY 2 2 2�?�;
� tTY ° ���oRNEY
DLSADVANI'AGES IF NOT APPROVED:
The development cannot occur but for tas increment fmanicng.
TOTAL AMOUN"1' OF TRANSACTION: $ `COST/REVENUE BUDGETED:
FONDING SOURCE: ACTIVITY NI'7MBER:
FINANCIAL INFORMATION: (EXPLAIN)